China’s HRC and CRC export offers this week have registered an increase of USD 10-15/MT against last week amid domestic market uptrend. Current offers for 2.5mm HRC (A36) are being assessed at USD 390-380-390/MT, FoB China. Whereas offers for CRC (1.0mm SPCC) are heard at USD 410-415/MT, FoB basis.
The sentiments in China’s domestic market have improved ahead of year’s peak season in September-October. As per market sources, prices are likely to increase further in upcoming days.
China has planned to cut its production capacity by 45 MnT in 2016 and in first seven months it has managed to cut nearly half of the targeted capacity cut. However, given the recent price increase in country’s steel prices, many manufacturers have become hesitant to cut their production. But Chinese government is very much determined to cut steel overcapacity in the country.
CIS-origin HRC offers are currently being heard at USD 370-375/MT whereas CRC offers are at USD 410-415/MT, FoB Black Sea.
HRC export offers from Japan/Korea to Bangladesh are being assessed at USD 390-395/MT, CFR Chittagong, same as last week.
India is offering its HRC in the overseas market at USD 390-395/MT, FoB India basis. The exporters here are currently targeting European and Bangladesh market.
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